By Liz Pencak
When it comes to finances, most people feel a sense of accomplishment when their income exceeds their expenses and their checkbook balances. In fact, most of us follow similar daily paths: work, play, pay.
We work hard for our money, save money when possible and research our options before making major purchases. What happens when our typical routine suddenly takes on a very different path? Have we looked far enough ahead to be prepared for the detour? Do we know what options are available and what to expect?
Preparation Counts
Let’s face it, there are many variables that come into play when planning for the future. Some of these variables may be planned, like buying a home, getting married, having children or paying for college. Others may be unforeseeable, like losing your job, sudden medical expenses or becoming a caregiver for a loved one. Whether planned or not, one thing is certain: each detour will impact our pocketbooks and may change final outcomes.
Statistics show that only about 50% of Americans are planning for the future, have a retirement income plan, or have an emergency fund set aside for the unexpected. Some will say their income prevents them from planning ahead. Or, they may feel prepared having already experienced an unexpected detour and prevailed. Regardless of the excuse, Americans need to take an active role in preparing for their personal future. After all, no one will ever have more of a vested interest in you than you will.
Beyond healthcare service options, you also need a solid understanding of how financial decisions today impact healthcare needs tomorrow. The complexity of the healthcare system, coupled with the ever-changing rules and regulations imposed by governmental agencies, requires the need to keep yourself educated.
For many people, Medicaid will become their primary source of income/payment as they age. You don’t want to be caught saying you didn’t realize how a particular financial transaction or decision would impact your qualification for Medicaid benefits.
For example, giving a cash gift to a grandchild or friend within 60 months prior to filing for Medicaid would place an individual into a penalty phase, making them ineligible for Medicaid until the penalty is rectified.
The good news is you can start the planning process today – and some of it won’t cost you a dime. Do the research now so you understand your options and can make informed decisions.
Healthcare needs often arise suddenly, are urgent in nature, and tend to generate emotionally charged scenarios. Being prepared makes you an informed consumer, and ultimately provides for better outcomes and less stress along the way. Now would be a great time to reach out to an elder law attorney for guidance. Knowledge is king.
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Liz Pencak is director of marketing and clinical liaison at The Village at Marymount in Garfield Heights. She is an advocate for people and believes that knowledge and communication makes us all better.
